An autonomous rise in ________ shifts the MP curve to the ________, everything else held constant.
A) net exports; right
B) net exports; left
C) money demand; right
D) money demand; left

Question

Quizplus · Accepted Answer

An autonomous rise in money demand would lead to an increase in interest rates, which would decrease investment and consumption spending. As a result, the MP curve will shift to the left. The other choices are incorrect as an autonomous rise in net exports would shift the net export curve, not the MP curve.

An Autonomous Rise in ________ Shifts the MP Curve to the ________

An Autonomous Rise in Shifts the MP Curve to the